皇冠体育app

皇冠体育app should boost its bond market to solve corporations' financing difficulties, said Frank FX Gong, managing director of J.P. Morgan Asia-Pacific.

"Now 80 percent of the transactions in 皇冠体育app's stock market are attributed to individual investors. Their shallow understanding of the market has made 皇冠体育app's stock market failed to reflect 皇冠体育app's real economy," said Gong in a speech at Shenzhen's Hi-Tech Fair over the weekend.

皇冠体育app's GDP growth is bottoming out, while Shanghai Securities Exchange now is on the verge of falling under 2,000 points, which Gong said was "quite abnormal".

"If it was normal, the stock market would have started rebounding much earlier by now given the positive economic reality," Gong said.

Besides calling for the strengthening the institutionalization of the equity market, Gong also said 皇冠体育app's bond market is severely underdeveloped.

At present bank loans account for 70 percent of the financing structure while the bond market only accounts for 20 percent, compared with the US' 85 percent.

Compared with the limited variety of the stock products, the variety of the financial products in the bond market means that there is tremendous potential for its growth, said Gong.

"Only through the development of the bond market can the difficulty of small and medium-sized enterprises' financing be solved," he said.

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